S&P 500 Financials break down pointing to additional
weakness in the overall equity market
The Financial sector technically broke down despite being oversold, heavily
shorted and with heavy put buying. This sector, which is now classified as having
a “bad oversold” reading, points to lower lows in the equity market. The summer
rally is over. We were anticipating an 8-10% correction from the highs on a break
in financials which is 3%-6% from current levels. But gauging the worst case
scenario, it is possible the extreme lows of March ’07 will be tested, which would
then be nearly a 15% correction. The following are the March ’07 lows for the
major US equity market averages: DJIA – 11940, S&P 500 – 1364 and NASDAQ
Comp – 2332.
More correction to come
Started by
Tor
, Jul 30 2007 04:38 AM
1 reply to this topic
#1
Tor
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- Traders-Talk User
- 7,647 posts
Member
Posted 30 July 2007 - 04:38 AM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
#2
eminimee
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- TT Member
- 14,307 posts
I don't care who's fur is flying...
Posted 30 July 2007 - 06:33 AM
Ignore the count on this....unless you are a raging bull 
...the point is...we have to see a breakdown of the TL from it's origin first....if it does...then I'm on side with you.
I'm thinking it bases here or just heades straight up.
http://stockcharts.com/c-sc/sc?s=$BKX&p=D&st=1994-07-28&i=p59103570110&a=113122393&r=7549.png
...the point is...we have to see a breakdown of the TL from it's origin first....if it does...then I'm on side with you.I'm thinking it bases here or just heades straight up.
http://stockcharts.com/c-sc/sc?s=$BKX&p=D&st=1994-07-28&i=p59103570110&a=113122393&r=7549.png
